In today's financial market, the rapid development of cryptocurrencies has attracted widespread attention from regulators around the world. Especially in the United States, the speech of the chairman of the Securities and Exchange Commission (SEC) has once again sparked heated discussions on the regulation of the cryptocurrency industry. He emphasized that cryptocurrencies should be regulated as securities, a position that not only puts higher requirements on the compliance of exchanges, but also has a profound impact on the future development of stablecoins.

In this discussion on the regulation of cryptocurrencies, the views of the chairman of the SEC can be said to be vigorous and resolute. He pointed out that many cryptocurrencies actually have the characteristics of securities, which means that they should comply with relevant laws and regulations. As the market continues to expand, the lag in regulation has become more and more prominent, especially in the regulation of exchanges and stablecoins. As the main platform for cryptocurrency trading, the compliance of exchanges not only affects the rights and interests of investors, but also directly affects the healthy development of the entire market.

First of all, the compliance issues of exchanges deserve attention. In recent years, as more and more investors have poured into the cryptocurrency market, the number of exchanges has also increased rapidly. However, many exchanges have not followed the necessary regulatory framework, leading to the emergence of many problems. For example, some exchanges have problems such as opaque information disclosure and insufficient fund security, which poses considerable risks to investors. In his speech, the chairman of the SEC mentioned the violations of some well-known exchanges and emphasized the need for strengthened supervision. In this regard, many investors have begun to reflect on the risks of crypto assets after experiencing the collapse of exchanges or security vulnerabilities, and the need for supervision has become more urgent.

In addition, the regulatory issues of stablecoins should not be ignored. Stablecoins are cryptocurrencies pegged to fiat currencies that aim to reduce price volatility and provide a relatively stable medium of exchange. However, the issuance and circulation of stablecoins often lack transparency, which makes it difficult to assess their potential risks. The chairman of the SEC pointed out that many issuers of stablecoins do not have sufficient reserves to support the amount of coins they issue, which is obviously not in line with the regulatory requirements of securities. Recently, a well-known stablecoin was investigated by regulators for failing to provide sufficient proof of assets, which undoubtedly sounded the alarm for the market.

In this process, investors' confidence is also being tested. Faced with the strengthening of supervision, many investors have begun to re-examine their investment decisions. On the one hand, they hope to be able to invest in a safe and compliant environment; on the other hand, market uncertainty has also made them doubt their future investment returns. Therefore, the SEC Chairman's reiteration is not only a warning to the market, but also a reminder to investors: while pursuing high returns, risk management is also indispensable.

In the process of regulating the cryptocurrency industry, international cooperation is also particularly important. Due to the transnational nature of cryptocurrency, regulatory measures in a single country are often difficult to work. Therefore, collaboration between regulators in various countries is particularly necessary. In his speech, the SEC Chairman mentioned that in the future, communication with international regulators will be strengthened to jointly respond to the challenges brought by cryptocurrency. This move will not only help improve the effectiveness of regulation, but also provide investors with a safer trading environment.

With the continuous advancement of technology, the regulation of cryptocurrency also needs to keep pace with the times. For example, the transparency of blockchain technology can provide new ideas for regulation, and the use of smart contracts and decentralized methods may enable a more efficient regulatory mechanism. In addition, with the application of artificial intelligence and big data technologies, regulators can better identify and prevent potential risks and ensure the stability and security of the market.

However, the strengthening of regulation may also trigger some backlash. Some cryptocurrency supporters believe that excessive regulation may inhibit innovation and affect the development of the industry. Therefore, while promoting regulation, how to maintain the vitality and innovation ability of the industry has become an urgent problem to be solved. This requires regulators to consider both the security of the market and the sustainable development of the industry when formulating policies.

In this context, investor education and protection are particularly important. In his speech, the SEC Chairman mentioned that investors should have sufficient knowledge and information to make wise decisions in a complex market environment. To this end, regulators should strengthen investor education, provide relevant guidance and support, and enable investors to better understand the risks and opportunities of cryptocurrencies.

For the future regulatory direction, the SEC Chairman's reiteration undoubtedly points the way for the market. With the gradual strengthening of supervision, exchanges and stablecoins will inevitably face more stringent compliance requirements. Investors also need to be more cautious when choosing investment targets and pay attention to relevant compliance information to protect their own rights and interests.

In general, the regulatory road of cryptocurrencies is full of challenges, but also contains opportunities. Under the leadership of the SEC Chairman, the future cryptocurrency market is expected to develop in a safer and more transparent environment. For investors, only on the basis of a full understanding of market risks can they better grasp investment opportunities and realize wealth appreciation. In this process, the role of regulators is particularly important. They are not only the maintainers of market order, but also the protectors of investors' interests. I hope that in the near future, we will see a more mature and healthy cryptocurrency market that will contribute to the development of the global economy.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), reiterated his view that most cryptocurrencies should be regulated by the SEC when speaking at the annual meeting of the International Exchange and Derivatives Association (ISDA) on the 11th.

"In fact, most cryptocurrencies (Gensler's original words are Cryptotokens) involve a group of entrepreneurs raising funds from the public in the hope of making a profit, which is a sign of an investment contract or a security under our jurisdiction."

Gensler pointed out that few crypto assets work like commodities, digital gold and payment currencies, which is why the SEC should have regulatory power over crypto assets, and he added: Without prejudging any token, most cryptocurrencies are investment contracts under the Supreme Court's Howey
Test.

The Howey
Test originated from a case in the U.S. Supreme Court in 1946 and is used to determine whether a transaction meets the conditions of an investment contract and thus constitutes a security. Under U.S. law, an investment contract exists if "funds are invested in a common enterprise with a reasonable expectation that profits will come from the efforts of others."

If the SEC considers cryptocurrencies as securities, it means that cryptocurrency providers must comply with the agency's regulatory and registration requirements. In addition, Gensler said that if the derivative contract of the swap is based on crypto assets, then it is a securities-based swap, so it also needs to be registered with the SEC. He emphasized: It is important to recognize that if the underlying asset is a security, the derivative must comply with securities regulations.

Criticizing evasion of regulation

On the other hand, Gensler once again pointed the finger at cryptocurrency exchanges in an exclusive interview with Bloomberg on the 11th, believing that some platforms are evading regulatory rules and may still be shorting their own customers. And worry that cryptocurrency exchanges have not established proper walls between different parts of their business, such as custody, market makers and trading platforms. He pointed out that the mixing of services may not be in the best interests of customers.

"Cryptocurrencies face many challenges such as trading platforms preempting customer transactions. In fact, these platforms often trade with customers because they are market makers for users."

In addition, the SEC chairman also mentioned the issue of stablecoins, emphasizing that the three major stablecoins are all related to cryptocurrency exchanges. The connection between USDT and Bitfinex, USDC and Coinbase, BUSD and. Gensler pointed out: I don't think this is a coincidence. Each of the three major stablecoins was created by trading platforms to facilitate trading on those platforms and potentially avoid anti-money laundering (AML) and know-your-customer (KYC) regulations.